.rm77 TELEMATICS SYSTEMS, LTD OBJECTS & ACTIVITIES To manufacture the components for electronic push button telephone instrumenta (EPBTs) and assemble them in to EPBTs. INCORPORATION & PROMOTION The Company was incorporated as a public limited company in Tamil Nadu on 18th January, 1985 and the Certificate for Commencement of Business was obtained from Registrar of Companies, Tamil Nadu on 28th March, 1985. It was promoted in joint sector by Electronics Corporation of Tamil Nadu Ltd. (ELCOT), and Shri R. Devadass and Associates 25% and 26% of equity capital was to be held by Shri R. Devadass and Associates and ELCOT respectively. TECHNICAL COLLABORATION The technical collaboration with Siemens AG of West Germany was under the Government of India Scheme for modernising the telecommunications industry. In terms of the agreement with Siemens, the Company was to be supplied major part of the key plant machinery including moulds and drawings, specifications,standards and operations and maintenance manuals, process and quality control know-how and procedures. Siemens was also to supply components as required on an on-going basis and initially supply complete EPBT kits in knocked down condition. OPERATIONS The Company commenced commercial production by assembling EPBTs with imported kits on 20th December, 1987. Till 31st March, 1988, the Company produced and sold 10,925 nos and 2,6658 nos. respectively of EPBTs.In 1988-89, production and sales amounted to 30,648 nos. and 29,759 nos. respectively. During 1989- 90, production and sales were substantially higher at 84,687 nos and 92,297 nos mainly due to bulk orders received from Mahanagar Telephone Nigam Ltd., and Department of Telecommunication. Consequently, there was a three fold rise in the turnover from Rs. 2.97 crores in the previous year to Rs 7.98 crores. a small volume of exports were also made to Singapore. An order was received for the manufacture of 50 units of RAX. During 1990-91, production of push button telephones (EPSTs) increased to 79,937nos. However, sales of EPBTs were substantially lower at 63,874 nos. due to the delay in finalising the letter of intent from MTNL. 60 units of rural automatic exchange (RAX) were manufactured and sold for a gross value of Rs. 1666.18 lakhs An order for the manufacture of 900 RAX units was being finalised. During 1991-92, volume of production and sales of EPBTS declined to 33,388 nos and 48,534 nos. respectively due to lack of regular orders and substantial reduction in the selling price fixed by the Department of Telecommunication. 48 units of RAX were produced and 47 units were sold during the year. EXPANSION & DIVERSIFICATION Under an indeginisation scheme approved by Government, the Company was expected to gradually reduce the import content of the product manufactured by the company. Towards this and, the Company commenced the manufacture of critical components in August 1989. Letter of intent was received for the manufacture of 50,000 lines per annum of Rural Automatic Exchange (RAX) in technical collaboration with Centre for Development of Telematics (C-DOT). IDBI was approached which was estimated at around Rs. 40 lakhs. Commercial production of RAX was commenced during 1989-90. Letter of intent was also received for the manufacture of pulse code modulation system (PCM). An order for supply of 50 units of RAX for a gross value of Rs. 1.38 crores was received from Department of Telecommunication. The Company also undertook a project to manufacture Digital Multiplex and Demultiplex needed for telecom sector. An agreement was signed with C-DOT for necessary technology transfer. A letter of intent was received for the manufacture of main distribution frames and gas discharge tubes used in the telecom sector. Process was initiated to identify a suitable foreign collaborator. During 1990-91, a letter of intent was received and a loan was also sanctioned for the manufacture of digital multiplex and demultiplex project. The loan was expected to be drawn by July/August 1991. During 1991-92, the implementation of the project for manufacture of multiplex and demultiplex equipment (MUX) was temporarily shelved as the DOT raised some points on the C-DOT design. The Company proposed to divert the loan of the MUX project to the manufacture of main Automatic Exchange (MAX) with a 512 line capacity. The Company had requested IDBI to divert the loan sanctioned for MUX to the MAX project. FINANCE The following are the foreign currency loans in equivalent Rupees: (i) Rs. 48 lakhs by IDBI (DM 118,570 + U.S.$ 36,699 + Danish Kronors 297,230 + Swiss francs 23,297). (ii) Rs. 50 lakhs by ICICI (DM 778.701) and (iii) Rs 42.78 lakhs by IFCI (DM 755,434) out of Deuteche Mark revolving fund. IDBI in participation with IFCI and ICICI sanctioned a Rupee term loan of Rs 217 lakhs (IDBI RS 109 lakhs, IFCI- Rs 54 lakhs and ICICI - Rs 54 lakhs) GENERAL As at 31st March,1992, the following amounts were outstanding against term loans (i) Rs. 130.00 lakhs from IDBI, (ii) Rs 71.91 lakhs from ICICI, and (iii) Rs. 71.91 lakhs from IFCI.